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Kasz216 on 04 January 2008
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Eomund said:
Final-Fan said:
Eomund said:
Kasz216 said:
Sqrl said:
JMan said:
Andir said:
JMan said:



Except for the prebate commission which would take nearly as much if not more man power as they IRS. To run the registration centers in every town, heck a few in every town since the poor can't find good travel to get to places. I've known people who couldn't get welfare because they couldn't get a ride there.

Oh, and the agents needed to audit the prebate numbers, to make sure that nobody is frauding the system, oh and the agents needed to audit every buisness in the US to make sure they arn't selling goods as for other sales instead of final goods.

I'm not seeing where the cutbacks in the IRS would be made.

See this is where the government should outsource this prebate responsibility. Private business wants to make money and so they will be the most efficient dollar for dollar. (this is not always the case, so don't bring it up. it is a general truth however.) All they would need to do is check the validity of a Social Secuirty number and send money to an account that is loosely based on the number of valid Social Security Numbers.

The government takes a census through the mail correct? And if they need to verify information they will either show up at your door or call you. They could include the FairTax registration with the next Census of 2010.

If Private Business is responsible for the running of this "Prebate Commission", as you call it, they would just need to create a few routines before they accept a new applicant.

1) Check for Citizenship status.

2) Check for unusual behavoir patterns, eg. a family is having a baby every 3 months.

Each business sends the collected FairTax to the state they are in. The States would be responsible for the oversight of each business as they are now. If a business claims that they took in $100,000 for that month, then they would be required to send in $23,000 to the State for the FairTax. The States then pass the FairTax onto the Treasury Department.

Since the FairTax is transparent and simple, the evasion of the FairTax will be down from the current evasion level. Now there will always be tax evaders. But since it is easier to collect and process the FairTax, the agents that track and prosecute the tax evaders will have a much easier job. They will only have to focus on a lot fewer people that they would have to pay attention to.

"Yet it remains the case that 80% of the sales tax collections will come from about 20% of businesses -- including the national and regional retailers -- and I doubt that Wal-Mart or Home Depot or your local hospital is going to risk jail time to help you." from the FairTax Book.


At what point in the process of giving money away is the profit made? Will the government reward them for giving less money away? If so, won't that encourage them to squeeze taxpayers?

On another note, if the entire tax collection system is concentrated on one point -- the point of sale of new items -- then there will be enormous incentive to evade that one point.

What are you talking about here? The company that is providing the service of the Prebate?

If that is what you are talking about there are a number of ways that they could make a profit doing this service, especially if that company is a bank or credit card company. That company could use the name recognition to boost sales or investments or loans or applications for credit. It is not like the government would pay them for managing this for them.

You make it seem like they would try to shaft people from the tax rebate they would get. If they even thought about trying that people could complain to the Treasury Dept. and start an investigation. If they were found guilty with any excuse besides a one-time negligence then they could be stripped of the job and that would cost them prestige and trust in the eyes of the public. That would cost them money.


 You mean the negative name recognition when people complain their checks don't come soon enough?  Otherwise they are just doing there job and people won't care.

 I don't see any company willingly doing this and spending there own money just to get bitched at and have people calling when there checks don't come exactly on time... or it a lot of cases early.